/Booking%20Holdings%20Inc%20office%20by-tupungato%20via%20iStock.jpg)
Booking Holdings Inc. (BKNG), headquartered in Norwalk, Connecticut, is a leading online travel company that offers hotel rooms, airline tickets, rental cars, vacation packages, cruises, travel insurance, and destination activities. With a market cap of $128.5 billion, the company operates in the U.S. through Booking Holdings.com and internationally through Booking.com and Agoda, which it acquired in 2007. In the competitive travel industry, the company competes closely with other travel giants like Expedia Group, Inc. (EXPE).
Companies worth $10 billion or more are generally described as “large-cap stocks,” and Booking Holdings fits right into that category. Its market cap exceeds this threshold, reflecting its substantial size, stability, and influence in the consumer cyclical sector. Expedia's multi-brand strategy makes it an industry leader, allowing it to target diverse consumer segments, travel needs, and markets with different business models.
Booking Holdings stock is down 3.3% from its 52-week high of $3,918, achieved on February 22. However, shares of Booking Holdings have gained 8.7% over the past three months, outperforming the broader S&P 500 Cons Disc Sector SPDR’s (XLY) 1.2% dip over the same time frame.
Over the long term, BKNG stock has surged 6.8% on a YTD basis and 45.4% over the past 52 weeks. By contrast, XLY’s marginal loss in 2024 and 10.6% gains over the past 52 weeks fall short of BKNG's performance.
To validate its bullish trend, BKNG stock has been trading consistently above the 200-day moving average, and also the 50-day moving average with some fluctuations.
Booking Holdings has navigated smoothly through a surge in travel demand this year. Following its impressive Q1 earnings results on May 2, which showcased robust international travel demand, BKNG stock surged 5.3% in after-hours trading and subsequent sessions.
However, Booking Holdings has recently come under scrutiny as Dutch prosecutors investigate a criminal complaint against its subsidiary, Booking.com. The complaint alleges that the company is profiting from war crimes by listing rental properties in Israeli settlements and violating Dutch anti-money laundering rules. Despite Booking.com's denial of the allegations, the investigation has raised concerns about the company's ethical practices and potential legal consequences.
Yet, Booking Holdings has maintained its strong momentum, surpassing its main competitor, Expedia Group. Shares of Expedia have gained 11.7% over the past year and declined 18.7% on a YTD basis.
Furthermore, analysts are bullish on the stock's outlook. The stock has a consensus “Moderate Buy” rating from 33 analysts covering it, and the mean price target of $4,034.57 reflects a premium of 6.5% to current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
